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The memory is not freed, because the previous data is still available by Out[nn] or %nn.

Note that if you do this, using %, %%, %n etc., which some people use in example code will not work. And when a large data set is shown the "Show More" and "Show Less" buttons do not work. You can bypass both problems by setting $HistoryLength to 1 while still conserving a lot of memory.

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